a corporate bond has 15 years left to maturity. it offers a coupon rate of 9.5%...

Question

Question

a corporate bond has 15 years left to maturity. it offers a coupon rate of 9.5%...

a corporate bond has 15 years left to maturity. it offers a coupon rate of 9.5% (paid semiannuall) on a $1000 par value. if it is currently selling in the market for $1140, what is its yield to maturity?

9.18%

8.23%

7.89%

6.84%

business finance

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

7.89%

Yield to maturity	=RATE(nper,pmt,pv,fv)*2
		= 7.89%


Where,
nper	=	30
pmt	=	$ 47.50
pv	=	$ -1,140.00
fv	=	$ 1,000.00

Add a comment

Answer 2

Similar Homework Help Questions

1. A bond with two years remaining until maturity offers a 3% coupon rate with interest...

1. A bond with two years remaining until maturity offers a 3% coupon rate with interest paid annually. At a market discount rate of 4%, find the price of this bond per 1000 of par value. 2. A bond offers an annual coupon rate of 5%, with interest paid semiannually. The bond matures in seven years. At a market discount rate of 3%, find the price of this bond per 1000 of par value. 3. A zero-coupon bond matures in...
A bond offers a coupon rate of 9%, paid annually, and has a maturity of 15...

A bond offers a coupon rate of 9%, paid annually, and has a maturity of 15 years. The current market yield is 7%. Face value is $1,000. If market conditions remain unchanged, what should be the Capital Gains Yield of the bond?
A callable bond has 15 years to maturity and can be called in 5 years. The...

A callable bond has 15 years to maturity and can be called in 5 years. The bond’s coupon rate is 12% with semi-annual coupon payments. The par value is $1000. If the bond is called, the call price will be $1100. The bond is currently selling for $1055.35 What is the difference between its yield-to-call and yield-to-maturity?

A fixed coupon bond with 12 years left until maturity has a coupon rate of 7%...

A fixed coupon bond with 12 years left until maturity has a coupon rate of 7% paid semi-annually. If the price of the bond is $1,060, its annual yield to maturity is _______%. Par value is $1,000. A. 6.281 B. 6.274 C. 3.137 D. 6.395
ield to maturity The Salem Company bond currently sells for $95544, has a coupon interest rate...

ield to maturity The Salem Company bond currently sells for $95544, has a coupon interest rate of 9% and a $1000 par value, pays interest annually, and as 18 years to maturity Calculate the yield to maturity (YTM) on this bond Explain the relationship that exists between the coupon interest rate and yield to maturity and the par value and market value of a bond. The yield to maturity on this bond is %. (Round to three decimal places.) ....
A bond with a par value of $1,000 and an annual coupon rate of 9.5% has...

A bond with a par value of $1,000 and an annual coupon rate of 9.5% has a yield to maturity of 6.4%. If the bond has 11 years to maturity, what is its current yield?

1. a corperate bond matures in 3 years. the bond has an 8% semiannual coupon and...

1. a corperate bond matures in 3 years. the bond has an 8% semiannual coupon and the par value is 1000. the bond is callable in 2 years at a call price of $1050. the price of the bond today is $1075. what is the bonds yield to call? 2. midea cooperation bonds mature in 3 years and have a yield to maturity of 8.5%. the par value is 1000. the bond has a 10% coupon rate and pay interest...
e none of the above 6. A corporate bond matures in years. The value of 51000....

e none of the above 6. A corporate bond matures in years. The value of 51000. The bond is callable in two year today is $1075. What are the bond' yield to call? .3.16 6.4.5% as an 8% semiannual coupon and a par "price of S1050. The price of the bond lave a yield to maturity of 8.5%. The par value ate and pay interest on semiannual basis. 7. Mides cooperation bonds mature in 3 years and have a yield...
Consider a coupon bond with two years left to maturity. It has a face value of...

Consider a coupon bond with two years left to maturity. It has a face value of $1000 and a coupon rate of 6%. Assume that all investors believe that the first coupon, to be received one year from today, will be paid but that there is only a 60% probability that the second coupon and the principal will be paid two years from today. There is a 40% chance that the investor will receive only $700 at the end of...

A corporate bond with a 5.75 percent coupon has 15 years left to maturity. It has had a credit rating of BB and a yield to maturity of 6.25 percent. The firm has recently gotten more financially stable and the rating agency is upgrading the bonds to BBB.

A corporate bond with a 5.75 percent coupon has 15 years left to maturity. It has had a credit rating of BB and a yield to maturity of 6.25 percent. The firm has recently gotten more financially stable and the rating agency is upgrading the bonds to BBB. The new appropriate discount rate will be 6.00 percent. What will be the change in the bond's price in dollars? (Assume interest payments are paid semiannually and a par value of $1,000.)

a corporate bond has 15 years left to maturity. it offers a coupon rate of 9.5%...

Homework Answers

Add Answer to:
a corporate bond has 15 years left to maturity. it offers a coupon rate of 9.5%...

Post as a guest

Earn Coins

1. A bond with two years remaining until maturity offers a 3% coupon rate with interest...

A bond offers a coupon rate of 9%, paid annually, and has a maturity of 15...

A callable bond has 15 years to maturity and can be called in 5 years. The...

A fixed coupon bond with 12 years left until maturity has a coupon rate of 7%...

ield to maturity The Salem Company bond currently sells for $95544, has a coupon interest rate...

A bond with a par value of $1,000 and an annual coupon rate of 9.5% has...

1. a corperate bond matures in 3 years. the bond has an 8% semiannual coupon and...

e none of the above 6. A corporate bond matures in years. The value of 51000....

Consider a coupon bond with two years left to maturity. It has a face value of...

A corporate bond with a 5.75 percent coupon has 15 years left to maturity. It has had a credit rating of BB and a yield to maturity of 6.25 percent. The firm has recently gotten more financially stable and the rating agency is upgrading the bonds to BBB.

a corporate bond has 15 years left to maturity. it offers a coupon rate of 9.5%...

Homework Answers

Add Answer to: a corporate bond has 15 years left to maturity. it offers a coupon rate of 9.5%...

Post as a guest

Earn Coins

Add Answer to:
a corporate bond has 15 years left to maturity. it offers a coupon rate of 9.5%...